Despite economic pressures, shoppers are expected to spend more this Mother’s Day. The latest forecast by GlobalData suggests total spending is projected to reach £1.7 billion, marking a 1.1 percent increase on 2023, with over half of consumers intending to buy gifts ahead of the day. However, retailers are concerned that shoppers will be prioritising quick bargains and availability and anticipate a shorter trading window.
With Mother’s Day being an event for which there is relevant demand in other countries, and on other dates, retailers should avoid having all their eggs in one basket when it comes to sales opportunities. Instead, they should be looking to spread the net as far and wide as possible to generate interest in their products.
Tony Preedy, managing director of Fruugo, shares his advice on how online retailers can make the most the international sales opportunities that are available this Mother’s Day:
Given the current economic climate, some sellers will consider lowering their prices ahead of Mother’s Day to undercut their competitors and boost sales. However, this will not help stimulate revenue in the long run. Indiscriminate use of discounting to drive volume can be ruinous since very few businesses properly calculate the impact on gross margin and the huge growth in units required to keep income stable, never mind growing.
Instead, our advice to brands and retailers would be to focus on increasing the visibility of their products and extend their window of opportunity via a robust international sales strategy. Indeed, retailers should look for opportunities available in other markets and avoid concentrating all their trading into a narrow time frame. After all, Mother’s Day is celebrated at different times of the year depending on the region. For example, the UK celebrates it in March on the fourth Sunday of Lent, while the US, Canada, China and other important markets celebrate it in May. With this in mind, pivoting to cross-border commerce can provide sellers with an opportunity to broaden their audience and extend their trading period – in this case, over a period of months. Rather than relying exclusively on limited local demand or a set trading window, sellers can tap into regional trends without needing to lower their prices.
Additionally, it pays for retailers to keep abreast of which products are more popular in different markets in order to capitalise on the global sales opportunities these cultural events provide. For example, clothing, flowers or chocolates may be popular choices in the UK, but music, cosmetics or jewellery might be more favourable in other parts of Europe or Asia. Sellers also need to think of the bigger picture with cultural events that have emotional ties; there will be customers who plan in advance and those who leave it until the last minute to purchase their gifts. Showcasing high quality products that are readily available in relevant regions will therefore be key. By reviewing their product line and marketing channels and ensuring that they can deliver to the markets they’re targeting, retailers can generate sales at full margin over a longer period of time; both on the lead up to the day and for any last-minute orders.
Working with cross-border marketplaces lowers the barriers to entry for retailers wanting to sell internationally and makes them more resilient to cross-border challenges. Sellers can connect with customers around the world at zero risk to themselves and more easily jump on trends that are spreading throughout multiple markets. They are also nimbler when it comes to making the most of cultural events like Mother’s Day, as marketplaces do the operational leg work so that sellers just need to focus on shipping the products.
– Tony Preedy, managing director, Fruugo
